The Aluminium Association of India (AAI) has requested the Government to raise the import duty on Aluminium products to 15%, up from the current 7.5%, and to tighten quality checks on imported scrap. In a letter sent on 27th October to the Ministry of Finance and the Department for Promotion of Industry and Internal Trade (DPIIT), the association cautioned that India could become a dumping ground for global Aluminium due to escalating geopolitical trade barriers in the US, China, and Europe.
Also Read: Hindalco Urged Policy Support as Aluminium Demand Set to Double in 5 Years
Imports Rising Faster Than Consumption
AAI noted that while India’s Aluminium consumption has grown by 160% over the past 14 years, the growth in imports has outpaced it by 90 percentage points, reflecting a growing dependency on foreign markets. Aluminium imports have increased sharply in the past five years and are projected to rise 72% to Rs. 78036 crore in FY26 from Rs. 45289 crore in FY22. If this trend continues, the association warned, 55% of India’s Aluminium demand in FY26 could be met through imports, undermining domestic producers’ competitiveness.
Also Read: Godda Became Jharkhand’s Export Hub, Powered by Adani Power
Industry Seeks Policy Support for Local Investment
The association’s representation underlines the domestic industry’s concern that unchecked imports and lower duties could stall major investment plans by Indian Aluminium producers. AAI argued that aligning import duties with global tariff practices and ensuring stringent scrap quality standards would help stabilise the market, promote local manufacturing, and protect jobs. The industry has called for the government to create a level playing field for Indian producers, ensuring that global trade shifts do not distort the country’s Aluminium sector.
Also Read: India to Establish a National Critical Mineral Stockpile (NCMS) to Secure Rare Earth Supplies
Join the WhatsApp Group of Business Jharkhand to Stay tuned for all the latest updates of industrial-political developments in Jharkhand.
